The Arbitrage Fund, et al. v. Forescout Technologies, Inc., et al., No. 3:20-03819 (N.D. Cal.)
On June 10, 2020, E&C filed a class action complaint on behalf of several of its institutional clients and other similarly situated investors against Forescout Technologies, Inc. (“Forescout”) (NASDAQ: FSCT), its CEO, Michael DeCesare, and CFO, Christopher Harms, in the Northern District of California. The action was brought on behalf of a class consisting of persons or entities that purchased or otherwise acquired the common stock of Forescout during the period February 6, 2020 through May 15, 2020, inclusive, and were damaged thereby.
The case asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Plaintiffs allege that defendants made materially false and misleading statements and omissions of material facts regarding, among other things, the significant and disproportionate decline in Forescout’s financial performance, as well as the related heightened risk that Forescout’s planned acquisition by Advent International Corporation would not close. As a result, class members that purchased Forescout common stock during the class period did so at artificially inflated prices. Plaintiffs seek, among other things, an award of damages and prejudgment interest, to plaintiffs and other class members.
On July 22, 2020, the Court entered a decision consolidating all pending actions in the Northern District California, vacating its order appointing the prior lead plaintiff and lead counsel, and ordering that the original lead plaintiff republish notice to potential class members regarding their ability to move for lead plaintiff appointment. E&C has also published a notice announcing the new deadline of September 28, 2020 for seeking appointment as lead plaintiff. If you wish to read the notice, please click here.